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Zero Effect Zero Deffect

Zed Certification: 

ZED Certification Scheme for Sustainable SMEs: This scheme enables MSMEs to pursue ZED certification at three different levels – bronze, silver, and gold. Each level involves an assessment based on specific parameters.

Benefits by Government of India
  • Listing on
  • Direct Listing of Silver & Gold on GEM (Government e-Marketplace) Portal
  • Concession in Processing Fee and Rate of Interest on Bank Loans
  • Joining Reward of Rs. 10000 (can be used for any certification)
  • Subsidy on cost of Certification (80%, 60% & 50%) upto Rs. 72000
  • Additional Subsidy for Women Entrepreneurs @ 10% upto Rs. 9000
  • Subsidy on cost of handholding / consultancy upto Rs. 160,000
  • Financial Assistant upto 75% of the total cost of testing or Management Systems or Product Certification with the maximum ceiling Rs. 50,000 (BIS, NABCB, NABL)
  • Financial Assistant upto Rs. 3 Lakh for technology upgradation for moving towards Zero Effect Solutions / Pollution control measures/cleaner technology
  • Admissibility of discount scheme in freight rates for parcels
Punjab Industrial & Business Development Policy dt. 08.02.2023
  • MSME units shall register themselves under the ZED Scheme and achieve maturity level at least Bronze category within 3 years from the date of production/expansion production.
  • In case of failing to achieve Bronze level certification, future disbursement of fiscal incentives including exemption of electricity Duty, Mandi Fees, Property tax, SGST Incentive etc. will be stopped
Benefits to MSME  by Punjab Government
  • 50% of cost (Max. Rs. 5 Lakh): Plant & Machinery/Testing equipment (Gold only)
  • 25% of cost (Max. Rs. 10 Lakh):  Registration of National Stock Exchange
  • 50% of cost (Max. Rs. 25 Lakh): adopting technology from a recognized National Institute
  • 75% of cost (Max. Rs. 1.5 Lakh): each for Energy/Environment/Steam/Water/ Safety Audit
  • 50% of cost (Max. Rs. 25 Lakh): on capital cost of Effluent Treatment Plant, Installation of Water Pollution Control Devices, and Installing Zero Liquid Discharge Technology
  • 75% of cost (Max. Rs. 10 Lakh/Rs. 20 Lakh) : Domestic Patent /International Patent
  • 25% of cost (Max. Rs. 10k) : Additional Support for Performance and Credit Rating Scheme
  • 100% of cost (Max. Rs.10 Lakh ): All quality certifications including ZED certification
  • 1% of FOB value or Actual Freight paid from the place of Manufacture to the place of shipment, whichever is less subject to Maximum of Rs. 20 Lakh per annum for 5 years.
  • Annual award of Rs. 1 lakh per unit for excellence in Productivity, Quality, Export for each category of enterprise
  • Reimbursement of the contribution of Industries of Rs. 1 Lakh per program for Design Awareness Program by National Institute of Design, Ahmedabad

Details required for ZED Certification

  1. Udhyam Adhaar Registration Certificate
  2. Photo of MSME Representative
  3. Photo of Building
  4. Photo of Working Area
  5. Photo of Product
  6. Photo of Raw Material Storage
  7. Photo of Finished Goods Storage
  8. Photo of Toilet
  9. Photo of Fire Extinguisher
  10. Photo of employees wearing Personal Protective Equipment like Jacket, Helmet, Gloves, Shoes, Mask etc.
  11. Photo of Product Delivery Record


MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions. Through the journey of ZED Certification, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc. MSMEs will also be motivated to adopt best practices in work culture, standardization of products, processes and systems etc. in order to enhance their global competitiveness and sustainability. The ZED Certification aims at enhancing the competitiveness of an MSME by assessment, modification through guidance, handholding, managerial and technological intervention – not just certification.

Please visit ZED website to know about MSME Sustainable (ZED) Certification Scheme at

The ZED Certification envisages promotion of Zero Defect Zero Effect (ZED) practices amongst MSMEs so as to:

Encourage and enable MSMEs for manufacturing of quality products using latest technology, tools & to constantly upgrade their processes for achievement of high quality and high productivity with the least effect on the environment

Develop an Ecosystem for ZED Manufacturing in MSMEs, for enhancing competitiveness and enabling exports

Promote adoption of ZED practices and recognising the efforts of successful MSMEs

Encourage MSMEs to achieve higher ZED Certification levels through graded incentives

Increase public awareness on demanding Zero Defect and Zero Effect products through the MSME Sustainable (ZED) Certification

Identify areas to improve upon, thereby assisting the Government in policy decisions and investment prioritization

ZED Certification is not mandatory by the Government; it is a voluntary scheme which will provide the MSMEs a roadmap to global competitiveness.

All manufacturing sector MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Sustainable (ZED) Certification and avail related benefits/incentives.

Visit the ZED website ( and click on the ZED Certification tab. You will then be directed to the Login/Registration Page where you will have to put your Udyam registration number and associated mobile number to proceed further. Once the validation is done you have to read and take the ZED Pledge. You may also refer to the detailed User Manual for ZED Certification, which is available on the website and your dashboard under “My Document” section.

ZED Certification is based on processes oriented quality specific standard and does not replace any other regulation/requirement or certification.

The ZED Scheme will be implemented nationwide through Organisations and Agencies such as QCI, NPC, Industry Chambers like CII, FICCI & ASSOCHAM, MSME-Development Institutes, MSME Technology Centres, Industry Associations, BEE, and other implementing agencies.

The major activities under the ZED Certification Scheme are:

Industry awareness programs, regional/state/national workshops, training of officials of DIs, TCs, DICs

Training of Master Trainers, Assessors & Consultants


Assessment, Certification and Surveillance

Gap analysis & Handholding for improving processes

International Benchmarking

Financial Supports

Site-assessments will be allocated to Assessment Agencies which have been accredited by Quality Council of India. The assessments will be carried out by Assessors from these accredited assessment agencies, who have undergone and passed a ZED Assessors training programme

The Gap analysis and handholding activity in the scheme will be allocated to Consulting Organizations which have been empanelled by Quality Council of India. The handholding will be carried out by Consultants from these empanelledOrganisations, who have undergone and passed a ZED Consultant training Programme.

Please click on 

Yes. This MSME Sustainable (ZED) Certification Scheme covers all the MSME sectors belonging to manufacturing

All MSMEs which are registered with Ministry of MSME can avail scheme benefits irrespective of the certifications they may have.

Yes. All MSMEs which are registered with Ministry of MSME can avail scheme benefits irrespective of the certifications they may have.

ZED certification is independent of Certifications like ISO etc. MSMEs are free to obtain any other certifications simultaneously.

The office of DC-MSME is actively pursuing this and discussions are in process to establish recognition/preference to ZED certified units among CPSUs, OEMs, Large buyers etc.

ZED certification system addresses and provides roadmap for enhancing business and greatly cutting down the cost. Though this is a voluntary scheme, the implementation of ZED will not be a burden but a boon to the MSMEs.

No, the allocation will be done by the implementing agency through a pre-defined process.

At present this scheme is designed for the manufacturing MSMEs of India, however work is in progress to create a model for the MSMEs in the service sector.

No. Only the Udyam registered MSMEs can participate in this scheme.

The scheme is applicable for all states/UTs of India.

  1. A limited-purpose joining reward of Rs. 10,000/- will be offered to each MSME once they take the ZED Pledge which needs to be utilized within a defined time period for the purpose defined.
  2. The Ministry of MSME will provide a subsidy of 80% to Micro enterprises, 60% to Small enterprises & 50% to Medium enterprises. There will be an additional subsidy of 10% for the MSMEs owned by Women/SC/ST Entrepreneurs OR MSMEs in NER/Himalayan/LWE/Island territories /aspirational districts.

Cost of Certification

  1. Certification Level 1: BRONZE: Rs. 10,000/-
  2. Certification Level 2:SILVER: Rs. 40,000/-
  3. Certification Level 3: GOLD: Rs. 90,000/-


For more detail about the scheme you can download the guidelines of the scheme by following this scheme:

MSME Unit needs to be at least ZED Bronze certified to seek handholding support. Please see page number 17, Section 3.5 of ZED Scheme Guidelines.

MSMEs are eligible to apply for reimbursement on ISO or other Certifications only after achieving a ZED Certification Level. Date of such Certificate (for which reimbursement is being sought) needs to be after the date of relevant ZED Certificate against which the financial support is sought. Please see page number 12, Section financial assistance in testing/system/product certification

Joining reward can only be used against assessment fee. Please see page number 10, Section 3.4.5 c of ZED Scheme Guidelines.

There is no surveillance in Bronze. After expiry of validity the MSME needs to upgrade to Silver or Gold or renew Bronze. Please see page number 17, Surveillance and Section 3.4.8 of ZED Scheme Guidelines.

Surveillance in Silver Certification shall be done remotely. Please see page number 17, Surveillance of ZED Scheme Guidelines.

Since the Scheme and Standard have undergone changes, assessors/consultants/master-trainers will have to undergo fresh training and examination.

Industry Awareness programmes shall be conducted by Industry Associations, Implementing Agencies, MSME-DIs, District Industries Centres (DICs), Large Enterprises/OEMs, BEE. Please see page number 4, Section 2.2 of ZED Scheme Guidelines.

Consulting under the ZED Scheme shall be conducted by empanelled Consulting Organizations. Guidelines for empanelment of Consulting Organizations shall be uploaded soon on the ZED Website.

Assessments under the ZED Scheme will be conducted by only those Agencies which are accredited by NABCB. Please see page number 9, Section 3.4.1. of ZED Scheme Guidelines.

Apart from Assessment & Certificate under MSME KAWACH, MSMEs can get a detailed understanding of the SOPs/ Guidelines/Key-elements to be followed on COVID-19. This will help the MSMEs to carry out a quick self-assessment to identify gaps, if any, and make improvements. They shall also be provided Capacity building on the SOPs/guidelines issued, through virtual trainings/ webinars and through e-learning modules. Please see page number 23, Annexure 4 of ZED Scheme Guidelines.

The Management System Certification must be through a Certification Body that is accredited by the National Accreditation Board for Certification Bodies (NABCB). Please see page number 12, 14 and 16, “Financial assistance in testing/system/product certification” of ZED Scheme Guidelines.

The subsidy will be applicable on only one Testing OR one Management System OR one Product Certification after achieving a ZED Certification Level. Subsidy is only on cost of Certification. Please see page number 12, 14 and 16, “Financial assistance in testing/system/product certification” point 5 of ZED Scheme Guidelines.


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